Inox Leisure Limited

INOX LEISURE LIMITED

QUARTERLY INVESTOR UPDATE Q3 & 9M FY16

1 DISCLAIMER

This presentation and the following discussion may contain “forward looking statements” by Inox Leisure Limited (“ILL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of ILL about the business, industry and markets in which ILL operates.

These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond ILL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements.

Such statements are not, and should not be construed, as a representation as to future performance or achievements of ILL. In particular, such statements should not be regarded as a projection of future performance of ILL. It should be noted that the actual performance or achievements of ILL may vary significantly from such statements.

2 DISCUSSION SUMMARY

 Q3 & 9M FY16 RESULT HIGHLIGHTS

 Q3 & 9M FY16 RESULT ANALYSIS

 NEW PROPERTIES OPENED

 PAN INDIA PRESENCE

 NEW SCREENS PIPELINE

 CONTENT PIPELINE

 SHAREHOLDING STRUCTURE

 FINANCIAL SUMMARY

 ANNEXURE

3 Q3 & 9M FY16 – RESULTS HIGHLIGHTS

Q3 FY16 YoY ANALYSIS REVENUES* EBITDA ** and EBITDA MARGIN PAT and PAT MARGIN

3,417.1 15.4% 15.5% 4.8% 4.6% 3,007.6 528.3 463.1 143.0 156.0 14 % 14 % 9 %

Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 EBIDTA EBIDTA % PAT PAT % 9M FY16 YoY ANALYSIS REVENUES* EBITDA ** and EBITDA MARGIN PAT and PAT MARGIN 5.9% 10,457.7 16.7% 14.0% 3.0% 7,990.6 1,748.6 613.7 1,122.6 241.0 31 % 56 % 155 %

9M FY15 9M FY16 9M FY15 9M FY16 9M FY15 9M FY16 EBIDTA EBIDTA % PAT PAT % Note: * Revenue from Operations, ** EBIDTA excluding Other Income In Rs. Mn 4 Q3 & 9M FY16 – REVENUE ANALYSIS

Q3 FY16 YoY ANALYSIS 9M FY16 YoY ANALYSIS REVENUES* BREAKUP REVENUES* BREAKUP

3,417.1 10,457.7 515.8 3,007.6 160.2 294.9 716.1 144.6 7,990.6 289.2 2,086.4 11 % 655.1 454.9 13 % 556.3 617.0 2 % 1,536.0 16 %

18 % 36 % 2,306.9 7,139.4 2,017.5 5,382.7 14 % 33 %

Q3 FY15 Q3 FY16 9M FY15 9M FY16

% Share Q3 FY15 Q3 FY16 % Share 9M FY15 9M FY16 Gross Box Office 67.1% 67.5% Gross Box Office 67.4% 68.3% Food & Beverages 18.5% 19.2% Food & Beverages 19.2% 20.0% Advertising 9.6% 8.6% Advertising 7.7% 6.8% Other Operating Revenues 4.8% 4.7% Other Operating Revenues 5.7% 4.9%

Note: * Revenue from Operations In Rs. Mn 5 Q3 FY16 – TOP 5 FILMS

Prem Ratan Bajirao Pyaar Ka Q3 FY16 Dilwale Tamasha Dhan Payo Mastani Punchnama 2

Footfalls (Mn) 1.5 1.4 1.0 0.9 0.8

GBOC (Rs Mn) 298 296 218 163 124

Top 5 films accounted for 48% of Q3 FY16 GBOC revenues

6 Q3 & 9M FY16 – KEY OPERATIONAL METRICS

FOOTFALLS AND OCCUPANCY RATE FOOTFALLS AND OCCUPANCY RATE - COMPARABLE PROPERTIES

31% 32% 28% 28% 27% 28% 29% 27% 42.0 34.8 32.6 30.3

11.6 12.9 11.6 12.1 11 % 29 % 4 % 15 %

Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16 Footfalls (Mn) Occupancy (%) Footfalls (Mn) Occupancy (%) Footfalls with Management Properties – Q3 FY16: 13.4 mn, 9M FY16: 43.5 mn

AVERAGE TICKET PRICE (ATP) (RS) AVERAGE TICKET PRICE (ATP) (RS) OF COMPARABLE PROPERTIES 180 175 179 174 166 171 164 169

2 % 3 % 3 % 3 %

Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16

All the above charts exclude managed properties. 7 Q3 & 9M FY16 – KEY OPERATIONAL METRICS

FOOD & BEVERAGES - SPEND PER HEAD (SPH) (RS) FOOD & BEVERAGES - NET CONTRIBUTION (%)

59 76.0% 76.0% 56 55 58 74.0% 75.0%

5 % 5 %

Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16

ADVERTISING REVENUES PER OPERATING SCREEN (RS MN) OTHER OPERATING REVENUES PER OPERATING SCREEN (RS MN)

1.9 2.0 1.43 1.41

0.85 0.78 0.42 0.43 8 % 1 % 2 % 1 %

Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16

8 Q3 & 9M FY16 – KEY OPERATIONAL METRICS

ENTERTAINMENT TAX - % OF GBOC FILM DISTRIBUTOR SHARE (%)

19.2% 19.4% 45.0% 18.9% 18.3% 44.2% 44.3% 43.1% 36.5% 35.7% 36.2% 34.7%

Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16 Distributor Share on NBOC Distributor Share on GBOC

Entertainment Average Residual OTHER OVERHEADS PER OPERATING SCREEN (RS MN) Properties Screens Seats Tax Period 10.9 11.6 Full Tax 88 346 90,360 3.1 3.4 Exempted 11 46 11,730 2 years 3.3 3.4 3.7 3.8 1.1 1.1 3.0 3.2 1.0 1.1 1.0 1.1 0.6 0.5 1.5 1.6 Q3 FY15 Q3 FY16 9M FY15 9M FY16 Employee Benefits Property Rent & Conducting Fees NBOC (Net Box Office Collections) , GBOC (Gross Box Office Collections) CAM, Power & Fuel, R&M Other Overheads

9 Q3 FY16 – NEW PROPERTIES OPENED

ADDITIONS IN Q3 FY16 PROPERTIES 4 SCREENS 20 SEATS 4,824

ADDITIONS IN 9M FY16 PROPERTIES 9 SCREENS 41 SEATS 8,827

R City Ghatkopar Goa Osia 20th November 2015 29th December 2015 9 Screens 2 Screens 2,109 Seats 335 Seats

Thrissur Sobha City Meerut PVS Mall Mall 31st December 2015 31st December 2015 3 Screens 6 Screens 1,012 Seats 1,368 Seats

10 PAN INDIA PRESENCE

2ND LARGEST MULTIPLEX CHAIN OPERATOR IN INDIA

Includes 6 management properties with 21 screens and 5,486 seats 11 NEW SCREENS PIPELINE

RACING TOWARDS 645 SCREENS

FY16 – PIPELINE Properties Screens Seats Jorhat 2 274 Goa 4 1,020 PIPELINE Surat 4 900 9M FY16 FY16 POST FY16 LEADING TO Gandhinagar 5 728 105 PROPERTIES 111 PROPERTIES 44 PROPERTIES 155 PROPERTIES Jaipur 4 936 413 SCREENS 435 SCREENS 645 SCREENS Bangalore 3 388 210 SCREENS 107,576 SEATS Total 22 4,246 111,822 SEATS 43,851 SEATS 155,673 SEATS

STRONG VISIBILITY FROM NEW SCREENS PIPELINE BACKED BY SIGNED AGREEMENTS

12 CONTENT PIPELINE – JANUARY 2016

Wazir Airlift Kyaa Kool Hain Hum 3 Saala Khadoos Release Date: 8th January 2016 Release Date: 22nd January 2016 Release Date: 22nd January 2016 Release Date: 29th January 2016 Cast: Amitabh Bachchan, Farhan Cast: Akshay Kumar, Nimrat Kaur Cast: Tusshar Kapoor, Cast: R Madhavan Aktar Director: Raja Krishna Menon Aftab Shivdasani, Krishna Abhishek, Director: Sudha Konga Director: Bejoy Nambiar Banner: T-Series Super Cassettes Mandana Karimi Banner: Rajkumar Hirani Films, Banner: Vinod Chopra Industries Ltd., Cape of Good Films, Director: Umesh Ghadge Tricolour Productions, Production, Reliance Crouching Tiger Motion Pictures, Banner: Balaji Motion Pictures, Utv Motion Pictures Entertainment Emmay Entertainment ALT Entertainment

Actual release dates may vary

13 CONTENT PIPELINE – FEBRUARY 2016

Ghayal Once Again The Finest Hours Fitoor Tere Bin Laden Dead Or Alive th th Release Date: 5th February 2016 Release Date: 5th February 2016 Release Date: 12 February 2016 Release Date: 19 February 2016 Cast: Sunny Deol, Om Puri Cast: Chris Pine, Ben Foster, Cast: Aditya Roy Kapoor, Katrina Cast: Manish Paul, Sikander Kher, Director: Rahul Rawail Eric Bana, Casey Affleck Kaif, Rakha, Ajay Devgan Director: Pradhuman Singh, Ali Zafar Banner: Sunny Sounds Director: Craig Gillespie Abhishek Kapoor Banner: Utv Director: Abhishek Sharma Banner: Walt Disney Pictures, Motion Pictures Banner: Walkwater Media Red Hawk Entertainment, Whitaker Entertainment

Actual release dates may vary

14 CONTENT PIPELINE – MARCH 2016

Jai Gangajal London Has Fallen Kapoor & Sons Rocky Handsome th th Release Date: 4 March 2016 Release Date: 4 March 2016 Release Date: 18th March 2016 Release Date: 25th March 2016 Cast: Priyanka Chopra, Prakash Jha, Cast: Gerard Butler, Morgan Cast: Alia Bhatt, Siddharth Malhotra, Cast: John Abraham, Shruti Rahul Bhat Freeman, Aaron Eckhart Fawhad Khan, Rishi Kapoor Hassan Director: Prakash Jha Director: Babak Najafi Director: Shakun Batra Director: Nishikant Kamat Banner: Prakash Jha Productions, Banner: G-BASE, Millennium Films, Banner: Dharma Productions Banner: J.A. Entertainment PLAY Entertainment LHF Film Azure Entertainment

Actual release dates may vary 15 SHAREHOLDING STRUCTURE

Share Price Performance Market Data As on 03.02.16 (BSE) 300 Market capitalization (Rs Mn) 20,883.1 250 Price (Rs.) 216.5 200 No. of shares outstanding (Mn) 96.5 150 Face Value (Rs.) 10.0 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 52 week High-Low (Rs.) 276.3 – 145.0

% Shareholding – December 2015 Key Institutional Investors at December 2015 % Holding Public / Goldman Sachs India 4.74% Others, 15.61 Macquarie Asia 4.27% Promoter & Inox Benefit Kuwait Investment Authority Fund 4.10% Promoter Trust, 4.51 Group, 48.70 Tata MF 2.87% Government Pension Fund Global 2.49% DII, 8.65 Reliance MF 2.21% ICICI Prudential MF 1.97% Morgan Stanley 1.63% FII, 22.53 Aperios Funds 1.53% Sundaram MF 1.39% Source: BSE * Shares held under Inox Benefit Trust reflect the Treasury Shares 16 FINANCIAL SUMMARY – LAST 5 YEARS

REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN

12.8% 14.0% 4.3% CAGR: 28.7% 8.3% 11.3% 12.1% 1.4% 2.4% 2.0% 10,168.1 0.7% 8,688.3 369.4 7,652.9 1,219.6 1,227.7 6,448.6 CAGR: 41.3% 980.1 CAGR: 41.5% 3,703.2 728.8 184.5 200.4 308.1 50.0 42.3

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 EBITDA EBITDA Margin % PAT PAT Margin %

REVENUES - SEGMENT BREAKUP LEVERAGE ANALYSIS RETURN METRICS 1.0 0.9 0.8 0.6 13.1% 5% 5% 4% 7% 7% 0.4 5% 5% 4% 11.5% 6% 8% 10.3% 16% 18% 19% 9.4% 19% 19% 6.0% 5.7% 6.1% 6.0% 6,761.9 75% 3.8% 73% 73% 69% 66% 3,154.3 3,202.9 3,245.8 3,909.1 1.6% 1.3% 1.4% 3,023.9 2,439.5 2,809.9 2,421.7 2,411.9

FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 9M FY16 * GBOC F & B Adv Others Debt Equity Debt to Equity ROCE % ROE % In Rs Mn ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt) * Calculated on Trailing 12 months basis 17 ANNEXURE

18 DETAILED FINANCIALS CONSOLIDATED P&L STATEMENT

Particulars (In Rs Mn) Q3 FY16 Q3 FY15 YoY % Q2 FY16 QoQ % 9M FY16 9M FY15 YoY % FY15 Revenue from Operations 3,417.1 3,007.6 13.6% 3,553.8 -3.8% 10,457.7 7,990.6 30.9% 10,168.1 Entertainment Tax 444.0 381.2 16.5% 475.7 -6.7% 1,382.0 986.9 40.0% 1,214.5 Exhibition Cost (Distributor Share) 845.4 753.7 12.2% 866.1 -2.4% 2,563.6 2,015.8 27.2% 2,493.2 Food & Beverages Cost 159.5 135.8 17.5% 176.0 -9.4% 519.3 392.0 32.5% 495.5 Employee Benefits Expense 200.2 189.9 5.4% 184.0 8.8% 564.1 488.3 15.5% 658.2 Property Rent, Conducting Fees and 523.9 466.7 12.3% 515.2 1.7% 1,529.6 1,291.6 18.4% 1,757.8 Common Facility Charges Other Expenses 715.8 617.2 16.0% 772.1 -7.3% 2,150.5 1,693.6 27.0% 2,321.2 EBITDA 528.3 463.1 14.1% 564.7 -6.4% 1,748.6 1,122.6 55.8% 1,227.7 EBITDA Margin % (Gross Revenues) 15.5% 15.4% 6 bps 15.9% -43 bps 16.7% 14.0% 267 bps 12.1% EBITDA Margin % (Net Revenues) 17.8% 17.6% 14 bps 18.3% -58 bps 19.3% 16.0% 324 bps 13.7% Depreciation & Amortisation 200.9 204.4 -1.7% 197.2 1.9% 595.6 577.4 3.2% 758.4 Other Income 9.2 41.0 -77.6% 14.1 -34.9% 27.7 56.7 -51.2% 82.7 Finance Cost 61.4 124.9 -50.8% 61.8 -0.6% 185.1 303.4 -39.0% 386.1 PBT Before Exceptional Items 275.1 174.8 57.4% 319.8 -14.0% 995.6 298.5 233.5% 165.9 Exceptional Items 49.6 0.0 - 0.0 - 49.6 5.0 - 6.0 PBT 225.5 174.8 29.0% 319.8 -29.5% 946.0 293.5 222.3% 159.9 Tax Expense 69.5 31.9 118.0% 114.7 -39.4% 332.2 52.5 532.7% -40.5 PAT 156.0 143.0 9.1% 205.1 -23.9% 613.7 241.0 154.6% 200.4 PAT Margin % 4.6% 4.8% -19 bps 5.8% -121 bps 5.9% 3.0% 285 bps 2.0% Earnings Per Share (EPS) (Basic) 1.69 1.67 1.8% 2.24 -24.1% 6.68 2.82 136.9% 2.18

19 DETAILED FINANCIALS CONSOLIDATED BALANCE SHEET

Particulars (In Rs Mn) SEP-15 MAR-15 Particulars (In Rs Mn) SEP-15 MAR-15 Share Holders’ Funds: Goodwill on Consolidation 1,652.1 1,652.1 Equity Share Capital 961.6 961.6 Non-Current Assets: Reserves and Surplus 6,584.7 6,127.0 Fixed Assets (Incl. CWIP) 6,737.1 6,681.1 Interest in Inox Benefit Trust -326.7 -326.7 Non-Current Investments 10.0 7.1 Total of Shareholder Funds 7,219.6 6,761.9 Long-Term Loans and Advances 1,723.1 1,813.0 Non-Current Liabilities: Other Non-Current Assets 41.0 39.6 Long Term Borrowings 1,894.2 2,005.1 Deferred Tax Liabilities (Net) 200.4 243.2 Total Non-Current Assets 8,511.2 8,540.8 Other Long Term Liabilities 31.7 43.3 Current Assets: Long Term Provisions 75.0 61.3 Current Investments 312.7 64.1 Total of Non-Current Liabilities 2,201.3 2,352.9 Inventories 91.4 75.9 Current Liabilities: Trade Receivables 707.3 623.2 Short-Term Borrowings 231.8 147.0 Cash and Bank Balances 154.7 134.4 Trade Payables 920.6 892.6 Short-Term Loans and Advances 128.1 106.8 Other Current Liabilities 734.7 905.6 Short-Term Provisions 266.3 155.0 Other Current Assets 16.8 17.7 Total of Current Liabilities 2,153.4 2,100.2 Total Current Assets 1,411.0 1,022.1 Total Equity & Liabilities 11,574.3 11,215.0 Total Assets 11,574.3 11,215.0

20 GROUP OVERVIEW STRONG PEDIGREE

. Strong legacy of more than 80 years. . Diversified businesses across industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors. . More than 8,000 employees at more than 100 business units across India. . Distribution network spread across more than 50 countries around the world.

Listed Companies Other Key Companies

Gujarat Fluorochemicals Inox Leisure Inox Air Products Private Inox India Private Inox Renewables Inox Wind Limited Limited Limited Limited Limited Limited

Mcap: Rs 53.9 bn Mcap: Rs 65.3 bn Mcap: Rs 20.9 bn . 50:50 joint venture with Air . Largest producer of . Engaged in the business of Products Inc., USA cryogenic liquid storage and setting up and operating of . transport tanks in India wind farms . Largest producer of . Fully integrated player in the . Second largest multiplex chain Largest producer of . . chloromethanes, refrigerants wind energy market in India industrial gases in India Offers comprehensive 213 MW operational solutions in cryogenic capacity in 3 different states and Polytetrafluoroethylene . 40 plants spread throughout . State-of-the-art manufacturing . In the business of setting up, storage, vaporization and with another 20 MW ready in India the country plants near Ahmedabad operating and managing a distribution engineering for commissioning . Pioneer of carbon credits in (Gujarat) and at Una (Himachal national chain of multiplexes . India Pradesh) and upcoming new under the brand name ‘INOX’ Has operations in India, USA, facility in Madhya Pradesh . Present in 57 cities with 105 Canada, The Netherlands . Ability to provide end-to-end multiplexes and 413 screens and Brazil turnkey solutions for wind farms STRONG SPONSORSHIP OF INOX GROUP - RECOGNIZED AND TRUSTED CORPORATE GROUP

21 COMPANY OVERVIEW BRIEF PROFILE

. Inox Leisure Limited (ILL), incorporated in 1999, is the 2nd largest multiplex operator in India . ILL is a part of Inox Group which is diversified across industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors BUSINESS . ILL currently operates 105 properties (413 screens and 107,576 seats) located in 57 cities across India, being the only multiplex operator having such a diverse presence across pan India OVERVIEW . The company accounts for ~19% share of the multiplex screens in India and ~8% share of domestic box office collections . The company has aggressively scaled up through organic and inorganic expansion over last decade growing from 2 properties – 8 screens in FY03 to 105 properties – 413 screens in Q3 FY16, virtually adding on an average 3 screens every month over the last decade

. One of the largest multiplex chains in India . Most diversified distribution of multiplexes in India KEY . Premium multiplex properties, state of the art technology and unmatched service and ambience STRENGTHS . Strong partnerships with more than 50 leading Indian and Global brands, offering high growth potential for advertising and other ancillary revenues . Strong management team and recognized and trusted corporate group

. Consolidated Revenues, EBITDA and PAT were Rs 10,168.1 mn, Rs 1,227.7 mn and Rs 200.4 mn in FY15 having grown at CAGR of 29%, 41% and 42% over FY11 to FY15 STRONG . Robust operating performance driven by rising footfalls, high ticket prices, highly profitable F&B service, focus on other FINANCIALS operating income . Strong balance sheet with gross debt of Rs 2,411.9 mn, net debt of Rs 2,277.5 mn and equity of Rs 6,761.9 mn in FY15 with a D/E ratio of 0.4x

22 COMPANY OVERVIEW TRACK RECORD OF AGGRESSIVE EXPANSION

105 96 413

372 79 74 68 310 63 285 257 239

32 26 22 119 14 91 9 6 76 2 3 51 35 25 8 12

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9M FY16 Screens Properties

ON AN AVERAGE ADDITION OF 3 SCREENS EVERY MONTH OVER THE LAST DECADE

Note: Includes Acquisition of 1) 89 Cinemas in FY08, 2) Fame India in FY11, 3) Satyam Cineplexes in FY15

23 COMPANY OVERVIEW PAN INDIA PRESENCE

57 Cities 105 Properties Well Diversified East, 8 Distribution of North, 26 East, 17 Multiplexes North, 18

across India West, 19 South, 23 West, 39 South, 12

Access to Wide Variety of Regional Content 413 Screens 107,576 Seats North, East, 67 East, 17,698 North, 89 22,805 Lower Dependency on Hindi and English South, South, 95 Content West, 162 23,220 West, 43,853

Includes 6 management properties with 21 screens and 5,486 seats 24 STRONG BRAND PARTNERSHIPS

BFSI FMCG CONSUMER DURABLES AUTOMOBILES GEC ECOMMERCE OTHERS &TELECOMM.

25 FOR FURTHER QUERIES:

THANK YOU

Nayana Borthakur Ammeet Sabarwal / Nilesh Dalvi General Manager - Brand & Corporate Communication Dickenson Seagull IR Contact No: +9122 4062 6900 Contact No : +91 9819576873 / +91 9819289131 Email: [email protected] Email : [email protected] [email protected]